Union Bankshares Excels in Third Quarter Financial Performance
Union Bankshares, Inc. (NASDAQ: UNB) has recently shared its financial results, highlighting an impressive performance for the three and nine months ended September 30. The bank announced net income of $3.4 million and $8.3 million, respectively, for these periods, showcasing an encouraging growth from the previous year when net income stood at $1.3 million and $5.8 million.
Balance Sheet Growth Continues
The company reported total assets of $1.57 billion, a notable increase from $1.52 billion a year earlier. A major factor behind this growth was a 5.1% uptick in loan volume, reaching $1.18 billion compared to $1.12 billion last year. Additionally, investment securities rose by 6.4% to $262.4 million, attributed to active purchasing strategies.
Maintaining Asset Quality
Despite challenging economic conditions, Union Bank continues to exhibit strong asset quality. The allowance for credit losses increased by 14% due to responsible risk management and the inherent growth in loans. Management remains proactive in adjusting reserves based on the evolving credit landscape and borrower profiles.
Residential Loan Origination
During the third quarter, Union Bank originated $46 million in qualifying residential loans and sold $102.8 million in total for the nine-month period. This reflects a solid increase compared to the prior year's figures, where $35.2 million and $76.1 million were recorded for the corresponding periods.
Deposits Show Stable Increase
Total deposits reached $1.19 billion, slightly higher than the $1.17 billion reported a year ago. The increase includes purchased brokered deposits of $65.3 million and $80 million during these periods. The bank also noted a rise in borrowed funds from Federal Home Loan Bank advances, amounting to $270.8 million.
Strengthening Stockholder Equity
Stockholder equity showed positive movement with the book value per share climbing 6.1% to $16.95, compared to the previous year. Retained earnings augmented by 5.3% to $95.1 million, and additional paid-in capital saw a 37.1% increase, reflecting sales from stock as per an equity distribution agreement activated earlier this year. So far, 38,834 shares have been sold, amassing net proceeds of $801,000.
Robust Income Statement Overview
Union Bank's consolidated net income for Q3 was $3.4 million, marking a substantial increase compared to $1.3 million from the same period last year. This boost can be attributed to significant growth in net interest income alongside lower credit loss expenses.
Impressive Earnings Growth
Net interest income increased by 18.3%, reaching $11.2 million. This surge was driven by a 11.7% rise in interest income, climbing to $19.2 million from $17.2 million a year ago. Additionally, credit loss expenses decreased from $425 thousand in Q3 2024 to $313 thousand in Q3 2025.
Dividend Declaration
The Board of Directors declared a cash dividend of $0.36 per share for the quarter, scheduled for distribution on November 6, to shareholders of record as of October 25.
Insight from the CEO
David S. Silverman, President & CEO, expressed satisfaction with the bank's financial trajectory, stating, "Our disciplined approach to asset growth, paired with prudent expense management and a steady loan portfolio, has fostered significant earnings growth. Our results are a testament to the hard work of our team and the trust placed in us by our customers."
Understanding Union Bankshares, Inc.
Union Bankshares operates as the parent company of Union Bank, providing diverse banking services in northern Vermont and New Hampshire. With a robust history dating back to 1891, the bank is recognized for its commitment to assisting customers in achieving impactful financial milestones such as home ownership, retirement savings, and business growth. Their dedication extends to community support, with employees actively involved in local initiatives.
Frequently Asked Questions
What is the recent financial performance of Union Bankshares?
Union Bankshares reported a net income of $3.4 million for the latest quarter, significantly up from the previous year.
How has the balance sheet of Union Bankshares changed?
The total assets increased to $1.57 billion with a notable loan growth of 5.1% compared to last year.
What did the CEO say about the earnings growth?
CEO David S. Silverman highlighted the bank's disciplined growth approach and strong loan portfolio as key factors in the earnings expansion.
What is the declared dividend for this quarter?
The Board declared a cash dividend of $0.36 per share, payable on November 6.
What services does Union Bankshares offer?
Union Bankshares provides commercial, retail, and municipal banking services, along with wealth management in northern Vermont and New Hampshire.
